Euro-Area Services Output Shrinks at Faster Pace Than Estimated

Euro-area services contracted at a faster pace than initially estimated in May, adding to indications the bloc’s economy is struggling to pull out of the recession.

An index of activity in the services industry based on a survey of purchasing managers was at 47.2 last month, compared with 47 in April, London-based Markit Economics said in a report today. The May figure is below an initial estimate of 47.5 published on May 23. A reading below 50 indicates contraction. A composite gauge of services and manufacturing increased to 47.7 in May, matching the earlier estimate, from 46.9 in the prior month.